CHICAGO, Illinois (CNN) -- President-elect Barack Obama has picked Peter Orszag, the head of the Congressional Budget Office, to head his Office of Management and Budget, a top Democratic source told CNN Tuesday.

Peter Orszag is a veteran of the Clinton White House.

Orszag, 39, is an expert on health care, pensions and Social Security policy.

A favorite of Clinton Treasury Secretary Robert Rubin, he and Rubin co-founded the Hamilton Project, an organization within the Brookings Institution focused on economic research and policy.

Jason Furman, Obama's economic policy director, took over the Hamilton Project when Orszag left for the budget office in 2007.

While at Brookings, Orszag also served as director of the Retirement Security Project and co-director of the Tax Policy Center, a joint venture with the Urban Institute.